A Drought Ends, but the Beat Goes On

The Sound Byte:

Under cloudy skies, governor Sonny Purdue announced yesterday that the wettest spring in 100 years has ended Georgia's drought, and the Georgia EPD watering restrictions in place since May 2008 would be immediately lifted.

The entire state will operate on an odd/ even schedule:

• even- numbered addresses can water freely Tuesday, Thursday, and Sunday.
• odd- numbered addresses can water freely Monday, Wednesday, and Saturday.

The Economic Analysis:

As everyone celebrates this announcement, none are celebrating more than our Landscapers: Before 2006, Georgia's Landscape Industry was the 2nd largest industry sector, behind Agriculture. The economic impact to Landscape businesses and to the state cannot be understated, and the relaxed watering rules are welcome news to landscapers and plantspeple alike. But alot of well drillers are nervous. They are under the mistaken assumption that the only reason they were drilling in Atlanta and Buckhead was because of the water restrictions. Many of there opportunists were simply reacting to market demand and never had long term plans for their area, nor looked at any value-added proposition for their services. This news will likely send those companies packing.

Its a tough economy, and eased water restrictions will not bring back the massive losses to individual investors who are looking for a safe place to put what assets they have still available.

If you, dear reader, are in this group- may I suggest putting your money in the ground?

A city of Atlanta resident with 20 zones of irrigation and a pool can recoup their entire investment in a water well in 3 years or less. I know: I have done the math. If one couples that with a driller who is willing to Guarantee water and offer Extended Warranties, the discussion becomes about 33% annual gains with no risk! Bernie Madoff is gone, and I'm not sure even he tried to make such claims!

Whether or not the drought returns; whether or not the EPD gets nervous again and reimposes restrictions: water costs what it costs, and will only get more expensive. As the Georgia Regional Water Councils continue to deliberate their Statewide plan, noone who pays attention is expecting LESS bureaucracy and regulations to come of their efforts.

In the end, well ownership will be shown to be the Wise investment.